NSEL files complaint against five defaulting members
Moneylife Digital Team 26 August 2013

NSEL said these five defaulting members did not have adequate commodities in the warehouses, which is against the mechanism specified in the Exchange circulars

National Spot Exchange Ltd (NSEL) said it has filed complaint against five of its defaulting members before the investigation authorities.


In a statement, NSEL said it declared its nine members as defaulters when they did not complete the last pay-in. "Amongst these nine defaulting members, the exchange has initiated case for investigation against five defaulting members who did not have adequate commodities in the warehouses, which is against the mechanism specified in the Exchange circulars. Non-delivery of commodities or its withdrawal is a breach of faith and breach of contractual arrangements," the release said.


The five defaulters against which NSEL has filed complained are, Ark Imports Pvt Ltd, Lotus Refineries Pvt Ltd, NK Proteins Ltd, Vimladevi Agrotech Ltd and Yathuri Associates. The four other announced defaulters are Loil Overseas Foods Ltd, NCS Sugars Ltd, Spin Cot Textiles Pvt Ltd and Tavishi Enterprises Pvt Ltd.


As per the rules and bye-laws, the Exchange has asked these defaulting members to submit their books of accounts and hand-over all the collaterals to NSEL.


NSEL has appointed SGS to carry out quality and quantity inspection of the commodities lying in the warehouses and their reports are being received in stages based on the inspection being done.


NSEL said it will also take similar recourse for other defaulting members who are not cooperating. As informed earlier, the NSEL board has already initiated investigation against the management team and its former managing director and chief executive.

Kamal Gupta
8 years ago
NSEL is making people fool by filing complaints against 5 defaulting members. Can any one in NSEL, tell us that it's whose duty to verify this and in fact NSEL was charging warehousing charges and other charges from the investors. Contract specifications are mentioning the following in the contract specification circulars:
1. Contract specifications;
2. Deductions and quality parameters;
3. Charges relating to Trading, Settlement and delivery;
4. Procedures, norms, conditions of delivery, quality check and withdrawals;
5. other terms and conditions.
The terms and conditions of the contract and process relating to the settlement will be binding on all.

NSEL is having certain fiduciary duties which they have to fulfill but they have not done the same and in fact looted the people by misusing the system. NSEL and borrowers are same and they have close nexus. They have done this keeping in view our legal system and procedures. They knew that it is difficult to prove the nexus. Till the time investigating agencies will catch hold of the borrowers and their related entities, nothing will come out. NSEL, its promoters and directors are liable for this loot. They should be booked for breach of trust under IPC.

NSEL people were giving wrong information to every body including statutory bodies inspite of this fact FMC is still sleeping. They should file a criminal complaint in police against the concerned people of NSEL, its directors, promoters and borrowers. There are many reasons for this. How overnight SGF become 60 crores from 860 crores.
Free Helpline
Legal Credit